Question
South Sea Baubles has the following (incomplete) balance sheet and income statement. BALANCE SHEET AT END OF YEAR (Figures in $ millions) Assets 2018 2019
South Sea Baubles has the following (incomplete) balance sheet and income statement. BALANCE SHEET AT END OF YEAR (Figures in $ millions) Assets 2018 2019 Liabilities and Shareholders' Equity 2018 2019 Current assets $ 106 $ 220 Current liabilities $ 82 $ 108 Net fixed assets 960 1,060 Long-term debt 680 910 INCOME STATEMENT, 2019 (Figures in $ millions) Revenue $ 2,030 Cost of goods sold 1,110 Depreciation 430 Interest expense 256 a&b. What is shareholders equity in 2018 and 2019? c&d. What is net working capital in 2018 and 2019? e. What are taxes paid in 2019? Assume the firm pays taxes equal to 21% of taxable income. f. What is cash provided by operations during 2019? g. Net fixed assets increased from $960 million to $1,060 million during 2019. What must have been South Seas gross investment in fixed assets during 2019?
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